CHICAGO — A suburban Chicago chiropractor has been sentenced to more than a year and a half in federal prison for fraudulently submitting reimbursement claims to private insurers and Medicare for nonexistent treatment.

JOHN KOSLOSKI operated Diagnostic & Therapeutic Rehab in Dolton, Ill.  From 2010 to 2017, Kosloski billed the private insurers for services that he purportedly provided to Amtrak employees and their family members, knowing that he was not actively treating them or had never seen them as patients.  Kosloski paid cash to the Amtrak employees in exchange for the ability to falsely bill using the employees’ and their family members’ personal information.  During the course of his scheme, Kosloski submitted more than 18,000 claims to insurers for services that he knew he did not provide, and he received more than $500,000 in reimbursements for the false claims.

Kosloski, 57, of Beecher, Ill., pleaded guilty last year to one count of health care fraud.  U.S. District Chief Judge Rebecca R. Pallmeyer on Monday imposed a 20-month prison term and ordered Kosloski to pay a $25,000 fine and more than $500,000 in restitution to the insurers.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Basil P. Demczak, Special Agent-in-Charge of the Central Region of Amtrak’s Office of Inspector General. 

“In a world that has limited funds to pay for health care, insurance providers paid defendant for fraudulent claims that could have been used to pay for necessary medical services,” Assistant U.S. Attorney Kelly M. Greening argued in the government’s sentencing memorandum.  “He made the choice to defraud insurers over and over again for eight years, stealing hundreds of thousands of dollars.”

CHICAGO — A federal judge today sentenced a Chicago attorney to four months in prison for false statement and tax offenses in connection with funds he received from the failed Washington Federal Bank for Savings.

PATRICK D. THOMPSON, 52, of Chicago, was convicted in February on all seven counts against him, including five counts of willfully filing a false income tax return and two counts of knowingly making a false statement to the Federal Deposit Insurance Corp.  U.S. District Judge Franklin U. Valderrama imposed the sentence after a hearing in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kathy Enstrom, Special Agent-in-Charge of the FDIC’s Office of Inspector General, Chicago Regional Office; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Sally Luttrell, Assistant Inspector for Investigations of the Department of the Treasury, Office of Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General.  Valuable assistance was provided by the City of Chicago Inspector General’s Office.  The government was represented by Assistant U.S. Attorneys Michelle Petersen, Brian Netols, and Jeremy Daniel.

According to evidence presented at trial, Thompson from 2011 to 2014 received $219,000 from Chicago-based Washington Federal via a purported loan and other unsecured payments.  He made one re-payment on the loan but then stopped making payments, and he failed to pay interest on the funds he received.  Washington Federal was shut down in 2017 after the Office of the Comptroller of the Currency determined it was insolvent and had at least $66 million in nonperforming loans.  When the FDIC, as successor in interest to Washington Federal, attempted to obtain repayment from Thompson in 2018, he falsely stated that he owed only $110,000 and that those funds were for home improvement.  In reality, Thompson knew he had actually received $219,000 in three separate installments – none of which went towards home improvements – and that $110,000 of it was paid by the bank directly to Thompson’s law firm as Thompson’s capital contribution to the firm.

The tax charges stemmed from Thompson falsely representing on five years of income taxes that he was entitled to a mortgage interest deduction for interest payments made on money he received from Washington Federal, even though he knew the loan was not a mortgage loan and he did not make interest payments as reported on those returns.

CHICAGO — A convicted felon from Chicago has been sentenced to six and a half years in federal prison for illegally selling more than a dozen handguns and rifles.

JYMIL CAMPBELL, 31, sold ten handguns, three rifles, and four large-capacity magazines during a nine-month period that ended with his arrest in the summer of 2016.  The sales netted Campbell a total of $8,700 in cash.  Unbeknownst to Campbell, the two buyers were confidential informants working on behalf of law enforcement.  They provided the guns to law enforcement after each sale.

Campbell pleaded guilty earlier this year to one count of willfully dealing firearms without a license and one count of illegal possession of a firearm by a convicted felon.  U.S. District Judge Robert W. Gettleman imposed the 78-month sentence on Dec. 12, 2018, in federal court in Chicago.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.

“No illegal sales of any firearms – especially in this time and place – should be accepted, let alone 13,” Assistant U.S. Attorney Devlin N. Su argued in the government’s sentencing memorandum.  “Chicagoans are extremely fortunate that the buyers of the weapons turned out to be working for law enforcement, because any willingness to inject guns onto the streets fuels the violence.”

Campbell acknowledged in a plea agreement that he could not legally possess or deal firearms because he had previously been convicted of two felonies – home invasion and armed robbery – and he lacked a federal firearms license. 

Most of the gun sales occurred in Campbell’s residence in the North Lawndale neighborhood of Chicago.  According to the plea agreement, one of the buyers put Campbell on notice that the firearms would be used in illegal gun violence.  Campbell nonetheless made the sale.  Campbell also admitted telling the buyer that although Campbell had personally fired one of the rifles, the firearm was essentially “brand new” and had not yet been “shot shot, like in a war.”

CHICAGO — A convicted felon from Chicago has pleaded guilty to federal firearm charges for illegally selling more than a dozen handguns and rifles.

JYMIL CAMPBELL, 31, admitted in a plea agreement that he sold ten handguns, four large-capacity magazines and three rifles during a nine-month period that ended with his arrest in August 2016.  Most of the sales occurred in Campbell’s residence in the North Lawndale neighborhood of Chicago.  The sales netted Campbell a total of $8,700 in cash, the plea agreement states.  Unbeknownst to Campbell, the two buyers were confidential informants working on behalf of law enforcement.  They provided the guns to law enforcement after each sale.

Campbell pleaded guilty Tuesday to one count of willfully dealing firearms without a license and one count of illegal possession of a firearm by a convicted felon.  The convictions carry a maximum sentence of 15 years in prison.  U.S. District Judge Robert W. Gettleman set sentencing for Nov. 15, 2018.

The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.  The government is represented by Assistant U.S. Attorney Devlin N. Su.

Campbell acknowledged in his plea agreement that he could not legally possess or deal firearms because he had previously been convicted of two felonies – home invasion and armed robbery – and he lacked a federal firearms license. 

According to the plea agreement, one of the gun buyers put Campbell on notice that the guns would be used in illegal gun violence.  Campbell nonetheless made the sale.  Campbell also admitted telling the buyer that although Campbell had personally fired one of the rifles, the firearm was essentially “brand new” and had not yet been “shot shot, like in a war.”

CHICAGO — John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today provided an update on federal prosecutions and strategies to combat violent crime in Chicago and the surrounding area.

“A fundamental duty of our government is to keep people safe, and the U.S. Attorney’s Office is using every available law enforcement tool to do that,” said U.S. Attorney Lausch.  “We are committed to investigating and prosecuting violent offenders and bringing quality, impactful cases to disrupt the cycle of violent crime in Chicago.” 

The centerpiece of the Department of Justice’s violent crime reduction efforts continues to be Project Safe Neighborhoods (PSN).  Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems and develop comprehensive solutions to address them.  PSN is an evidence-based program that focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs to pursue lasting reductions in crime.

The U.S. Attorney’s Office in Chicago leads the Chicago Firearms Trafficking Strike Force, one of five Department of Justice cross-jurisdictional strike forces designed to disrupt illegal firearms trafficking and reduce gun violence.  The U.S. Attorney’s Office collaborates with the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to stem the supply of illegally trafficked firearms and to identify patterns, leads, and potential suspects in violent gun crimes.  The Chicago strike force’s efforts have been substantially enhanced by the Chicago Police Department’s (CPD’s) Gun Investigations Team.



“Firearms traffickers and straw purchasers enable violence,” said U.S. Attorney John R. Lausch, Jr.  “The Chicago Firearms Trafficking Strike Force has strengthened collaboration between our federal, state, and local law enforcement partners and enhanced our longstanding efforts to hold accountable individuals or groups who illegally traffic firearms into Chicago.”



In addition to a sustained focus on prosecutions of federal firearm offenses, the U.S. Attorney’s Office endeavors to disrupt violent crime by seeking pre-trial detention for defendants who pose a danger to the community and pursuing appropriate prison sentences to deter dangerous individuals from continuing to cause violence in their communities. 

Following up on activities most recently reported in May of this year, the U.S. Attorney’s Office remains active in fighting violent crime through enforcement actions, prosecutions, and community partnerships, as illustrated by the below examples from the past six months.

Enforcement Actions and Prosecutions

The U.S. Attorney’s Office works closely with U.S. law enforcement agencies, including ATF, Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), Postal Inspection Service (USPIS), Internal Revenue Service Criminal Investigation Division (IRS-CI), and U.S. Marshals Service (USMS), to investigate and prosecute a variety of violent crimes.  State and local partners in this effort include CPD, Illinois State Police (ISP), Illinois Department of Corrections (IDOC), Cook County State’s Attorney’s Office, Cook County Sheriff’s Office, Rockford Police Department (RPD), Winnebago County State’s Attorney’s Office, and other police departments and prosecutors’ offices throughout northern Illinois.  The U.S. Attorney’s Office and many of these law enforcement agencies participate in the Organized Crime Drug Enforcement Task Forces Program (OCDETF), which identifies, disrupts, and dismantles the highest-level criminal networks by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies. 

The primary focus of these collaborative law enforcement efforts is to investigate and prosecute gangs and other groups of individuals who work in concert to commit violent crimes, including murders, attempted murders, robberies, carjackings, drug trafficking, and firearms trafficking.  In addition, enforcement efforts also identify for potential federal prosecution individual offenders who drive violence.

Firearm and violent crime investigations in Chicago have been bolstered by an important tool from ATF – the National Integrated Ballistic Information Network (NIBIN).  NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms.  NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles.  Federal, state, and local law enforcement in Chicago have used NIBIN to help solve violent crimes and prosecute trigger-pullers and other gun offenders. 

Racketeering and Gang-Related Prosecutions

“Combating the unacceptable level of gang violence in Chicago has been and will continue to be a top priority in our office,” said U.S. Attorney Lausch.



After a two-month trial, a jury convicted the leader of the Wicked Town faction of the Traveling Vice Lords street gang and another member of the gang on racketeering conspiracy and firearm charges.  The jury found that gang leader DONALD LEE, of Chicago, committed three murders and supplied the firearms used in three other killings, while TORANCE BENSON, of Chicago, committed a murder and three attempted murders.  Lee faces a mandatory sentence of life in prison.  Lee and Benson were among 13 defendants charged as part of a multi-year investigation.  The other eleven defendants pleaded guilty prior to trial, with one being sentenced to 50 years in prison.  The others are awaiting sentencing.  ATF and CPD led the probe, with assistance from the FBI, IRS-CI, ISP, DEA, Cook County State’s Attorney’s Office, Cook County Sheriff’s Office, and the Chicago High Intensity Drug Trafficking Area program (HIDTA), which addresses narcotics-related issues by collaborating with law enforcement and treatment and prevention partners.

PIERRE ROBINSON, of Chicago, was convicted of committing murder in aid of racketeering.  Robinson fatally shot a man in a convenience store on the South Side of Chicago to maintain and increase Robinson’s position in the “Evans Mob,” a violent street gang.  Robinson faces a mandatory sentence of life in prison.  ATF and CPD led the investigation.

A member of the Four Corner Hustlers street gang was sentenced to 35 years in federal prison for engaging in a pattern of racketeering activity that included multiple murders, armed robberies, drug trafficking, and extortion. TREMAYNE THOMPSON, of Chicago, admitted that he fatally shot two victims after receiving instructions from a gang leader.  Thompson was one of nine defendants convicted as part of an investigation led by ATF, HSI, and CPD.



Firearms Trafficking Prosecutions

“We are using every available federal law enforcement tool to continue to bring impactful cases that hold firearm traffickers accountable and reduce violent crime in Chicago,” said U.S. Attorney Lausch.



JAMEL DANZY, of Hammond, Ind., was sentenced to two and a half years in prison for conspiring to “straw purchase” a handgun that was used to fatally shoot Chicago Police Officer Ella French and seriously wound her partner.  Danzy bought the gun from a licensed dealer in Indiana on behalf of a convicted felon whom Danzy knew resided in Illinois and was not lawfully allowed to purchase a gun.  The handgun was discovered by law enforcement at the scene of the shooting of the two officers.  ATF and CPD investigated.

A Freeport, Ill., woman pleaded guilty to firearm charges for “straw purchasing” multiple guns for a convicted felon whom she knew could not legally purchase the guns.  FELICYA KNOX faces a maximum sentence of ten years in prison.  ATF investigated the case, with assistance from the Stephenson County Sheriff’s Office and Freeport Police Department.

ROBERTO PRIETO, of Chicago, was sentenced to ten years in prison for trafficking at least five firearms and illegally possessing guns as a previously convicted felon.  ATF investigated.

SCOTT TREECE, of Rockford, was sentenced to seven and a half years in prison for illegally trafficking at least ten firearms from Georgia to Chicago.  Because Treece was a felon during this time, he used straw purchasers to purchase the guns, including co-defendant KYLE HALL, of Algonquin, Ill.  Hall pleaded guilty and is awaiting sentencing.  ATF led the probe.

A federal indictment charged RICARDO LARREA, of Whiting, Ind., with conspiring to “straw purchase” 27 firearms in Indiana on behalf of a Chicago resident.  Larrea falsely certified on federal forms that he was the actual buyer of the guns, knowing that the Chicago resident had identified which firearms he wanted and paid Larrea to buy them.  ATF investigated.

JAVAUGHN A. HIXSON, of Rockford, was sentenced to five and a half years in prison for illegally possessing four firearm “switch” devices.  The device, also known as a “Glock switch,” is designed to convert a firearm into a machine gun capable of automatically firing more than one shot with a single pull of the trigger.  The investigation was conducted by ATF, RPD, and the Winnebago County Sheriff’s Office.

Machine gun dealer LEONARD D. JOHNSON, of Robbins, Ill., was sentenced to ten years in prison for unlawfully dealing handguns and “switch” devices in the Chicago area.  A court-authorized search of Johnson’s residence turned up 117 “switch” devices and three handguns that had been converted into machine guns, as well as another handgun, a silencer, three extended magazines, and ammunition.  ATF led the probe, with assistance from the Lansing, Ill., Police Department and Midlothian, Ill., Police Department.

ARSHAD ZAYED, of Orland Hills, Ill., was charged with illegally selling 36 firearms, including personally manufactured “ghost guns” and machine guns.  Many of the transactions occurred in a car wash that Zayed managed in the Chicago suburb of Matteson, Ill.  The investigation was conducted by FBI, ATF, CPD, ISP, and IRS-CI.

Two Indianapolis men – DEVANTE T. BROWN and COREY SARTIN – were charged with firearm violations for allegedly trafficking ten guns, including four semiautomatic rifles and two “ghost guns,” from Indianapolis to Chicago.  The probe was led by ATF and CPD, with assistance from the Dolton, Ill., Police Department.

Chicago resident ANTHONY PEREZ-FLORES was charged with trafficking more than a dozen guns, including a “ghost gun” and a machine gun, in Chicago.  Perez-Flores was on parole for a state firearm conviction when he allegedly sold the guns to an undercover officer.  ATF, CPD, and the Cook County Sheriff’s Office investigated.



Carjacking Prosecutions



“Our message to would-be carjackers is simple: Committing a senseless act of violence like carjacking will earn you a home in federal prison for a long time,” said U.S. Attorney John R. Lausch, Jr.  “We are working closely with our law enforcement partners to pursue, prosecute, and detain violent carjackers.”





MONTE HANDLEY, of Chicago, was charged with stealing a Nissan Sentra in the Archer Heights neighborhood on Chicago’s Southwest Side.  A woman and a one-year-old child were passengers in the vehicle at the time of the alleged carjacking.  FBI and CPD led the probe, with assistance from ISP. 

Two Chicago men – EDSON RESENDEZ and MAVERICK CELA – were charged with carjacking vehicles in the Chicago suburbs of Morton Grove, Ill., and Skokie, Ill.  Resendez allegedly brandished a firearm during the carjackings.  The probe was led by FBI, with assistance from the Morton Grove Police Department and Skokie Police Department.

KEWAN A. TILLMAN, of Calumet City, Ill., was charged with carjacking a vehicle at gunpoint while two children were in the car.  ATF investigated, with assistance from the Posen, Ill., Police Department.

A federal grand jury indicted NOAH RANSOM, of Chicago, on carjacking and firearm charges for allegedly carjacking a rideshare driver at gunpoint in downtown Chicago.  FBI led the probe, with assistance from the ISP and CPD.

Chicago resident ELIAS QUINONES-FIGUEROA was sentenced to more than 12 years in prison for stealing a vehicle at gunpoint and striking a bicyclist while fleeing from police.  FBI and CPD investigated, with assistance from the Cook County State’s Attorney’s Office.

TRIMANE O. KIMBROUGH, of Chicago, was charged with brandishing a semiautomatic handgun and stealing a Mazda 6 from a victim in Chicago.  The investigation was conducted by the FBI-led Violent Crimes Task Force, which includes the Cook County Sheriff’s Office, ISP, and CPD.  The Northwestern University Police Department assisted the task force.

Federal charges allege ALLEN CLAY, of Chicago, brandished a semiautomatic handgun and NARONN CAIN, of Chicago, brandished a semiautomatic rifle when the pair stole a Kia Optima from a victim in Chicago.  The investigation was conducted by the FBI-led Violent Crimes Task Force and CPD.



Illegal Possession of Firearms Prosecutions

“Any felon thinking about picking up a gun in Chicago should expect to be prosecuted to the fullest extent of the law and face the possibility of going to federal prison for a long time,” said U.S. Attorney Lausch.



KEJUAN CARR, of Chicago, was sentenced to more than four years in prison for illegally possessing a loaded handgun in Chicago’s Humboldt Park directly across the street from a children’s playground.  Carr was on parole for a recent firearm conviction when he possessed the gun.  FBI and CPD investigated, with assistance from IDOC.

Heroin and fentanyl dealer LONDON GROVER, of Chicago, was sentenced to 14 years in prison for possessing a firearm to protect his drug dealing operation.  ATF and CPD investigated.  The case was prosecuted by the U.S. Attorney’s Office’s Gun Crimes Prosecution Team, which works collaboratively with federal and local law enforcement to enhance the prosecution of illegal firearm possession in certain police districts in Chicago.

Rockford resident THOMAS BROOKS II was sentenced to eight years in prison for illegally possessing a machine gun loaded with 17 rounds of ammunition.  ATF and RPD conducted the investigation.  The case was prosecuted by Special Assistant U.S. Attorney Theodora Anderson, a prosecutor with the Winnebago County State’s Attorney’s Office who is working with the U.S. Attorney’s Office under a federal grant to prosecute certain firearm offenses in federal court.

A Chicago man was charged with firearm and drug offenses for allegedly possessing a loaded handgun, cocaine, and fentanyl on a Chicago Transit Authority train.  CPD officers boarded a CTA Green Line train in the city’s downtown Loop neighborhood and arrested TERRELL WEATHERS.  FBI and CPD investigated.

Convicted felon SHAZARIYAH F. HIBBETT, of Rockford, was sentenced to seven and a half years in prison for illegally possessing a loaded semiautomatic handgun after a traffic stop in Rockford.  ATF and RPD led the probe.

TYJUAN LIGHTHALL was sentenced to more than five years in prison for illegally possessing a loaded handgun in Chicago and fraudulently obtaining a small business loan under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.  The gun, which Lighthall unlawfully purchased from an individual in Indiana for $400, was equipped with an extended magazine capable of holding more than fifteen rounds of ammunition.   ATF and the Evanston Police Department investigated the case.

A Grundy County man was sentenced to 12 and a half years in prison for illegally possessing two handguns, three explosives, multiple magazines of ammunition, and drug paraphernalia.  During a dispute a day earlier, JOHN FEENEY, of Minooka, Ill., used one of the firearms to shoot at an individual, striking the individual’s vehicle.  The case was investigated by ATF and the Grundy County Sheriff’s Office.

JULIAN ALMANZA, of Chicago, was sentenced to nearly four years in prison for illegally possessing a loaded handgun in Chicago’s Humboldt Park neighborhood.  Almanza stood in the middle of a street and pointed the gun at multiple individuals during an altercation.  ATF and CPD investigated, with assistance from the Cook County State’s Attorney’s Office.

A man who was previously convicted of a 1993 kidnapping and murder was sentenced to nearly six years in prison for illegally possessing a loaded handgun during a traffic stop in Maywood, Ill.  DARNELL LUCKETT, of Berwyn, Ill., also possessed ammunition, heroin, marijuana, a digital scale, and counterfeit cash.  FBI investigated, with assistance from ISP.

BRIAN STAFFORD, of Bellwood, Ill., was sentenced to more than 13 years in prison for illegally possessing two handguns and three assault rifles and dealing heroin and crack cocaine.  The firearms had been stolen from a cargo train in Chicago in 2016.  FBI led the probe, with assistance from ATF, Cook County Sheriff’s Office, Evergreen Park, Ill., Police Department, and Bolingbrook, Ill., Police Department.

A man who illegally possessed a semiautomatic handgun in Evanston, Ill., and tried to flee from police was sentenced to nearly eight years in prison.  DARIUS MORALES, of Evanston, was a passenger in a Jeep that led police on a high-speed chase through downtown Evanston until it crashed into a fence in the backyard of a residence.  DEA led the probe, with assistance from ATF, Evanston Police Department, and Cook County State’s Attorney’s Office.



Other Significant Violent Crime Prosecutions



A Chicago man was sentenced to nearly eight years in prison for using a machine gun to rob a law enforcement officer during an undercover firearms deal.  With the assistance of aerial support, law enforcement after the transaction followed CORTEZ PRICE to a nearby residence and arrested him.  ATF and CPD led the probe.  U.S. Customs and Border Protection provided the aerial support.

JOSEPH HAMMOND, of Chicago, was sentenced to nine and a half years in prison for attempting to fire a loaded gun at federal agents and task force officers while holding a toddler.  Hammond pulled the trigger, but it misfired.  ATF and CPD investigated.

A federal judge sentenced FLOYD E. BROWN, of Springfield, Ill., to 55 years in prison for killing Special Deputy U.S. Marshal Jacob Keltner.  Special Deputy Keltner was fatally wounded in 2019 when members of the U.S. Marshals Service Great Lakes Regional Fugitive Task Force and other law enforcement officers attempted to execute a warrant for Brown’s arrest at a Rockford hotel.  Special Deputy Keltner served as a McHenry County Sheriff’s deputy and was a sworn member of the task force.  FBI led the federal investigation, with assistance from ATF, USMS, RPD, McHenry County Sheriff’s Office, Winnebago County Sheriff’s Office, Bloomington, Ill., Police Department, Loves Park, Ill., Police Department, Lincoln, Ill., Police Department, Logan County Sheriff’s Office, and ISP.

TIMOTHY O’DONNELL, of Chicago, was sentenced to nearly three years in prison for setting fire to a CPD vehicle during a period of civil unrest in downtown Chicago in 2020.  O’Donnell set the fire while wearing a “Joker” mask that partially covered his face.  FBI investigated, with assistance from CPD.

A Chicago man was charged with shooting a Senior Inspector U.S. Marshal and his K9 partner during the execution of an arrest warrant.  The Senior Inspector U.S. Marshal and K9 partner suffered non-life threatening injuries.  The case was investigated by FBI and CPD, with assistance from USMS.



Drug Trafficking Prosecutions

The U.S. Attorney’s Office targets traffickers who bring illegal drugs into Illinois from other states or countries, with a focus on organizations or individuals who use guns, violence, and threats of violence to protect and promote their illegal businesses.  The U.S. Attorney’s Office works directly with state’s attorney’s offices throughout the district to ensure that individuals trafficking drugs are charged with appropriate offenses in either federal or state court.

Public safety is also being threatened by unprecedented levels of opioid poisoning, misuse, and overdose.  Opioids are a class of highly addictive drugs that includes heroin, fentanyl, and prescription painkillers such as oxycodone and hydrocodone.  U.S. Attorney Lausch in 2019 created an Opioid Task Force for the purpose of combatting the growing number of unlawful distributions of controlled substances fueling the nation’s opioid crisis.  This effort includes prosecuting the leaders of traditional drug trafficking organizations, as well as rogue health care providers and others who contribute to the misuse of opioids. 



“We are actively attacking the opioid crisis from all investigative and prosecutorial angles,” said U.S. Attorney John R. Lausch, Jr.





International drug trafficker LUIS EDUARDO GONZALEZ GARCIA was sentenced to 30 years in prison for partnering with Mexican drug cartels to purchase and transport thousands of kilograms of cocaine to Chicago and other parts of the U.S.  DEA led the probe as part of an OCDETF operation.

A multi-year drug trafficking investigation resulted in charges against ten individuals for allegedly conspiring to distribute at least 35 kilograms of fentanyl-laced heroin and crack cocaine on the West Side of Chicago.  Law enforcement during the probe seized more than a kilogram of narcotics, as well as 13 firearms and more than $40,000 in suspected illicit proceeds.  FBI, IRS-CI, and CPD conducted the investigation.

RICHARD A. HUSBAND and WAYNE TOWNSEND, both of Chicago, were charged with selling fentanyl-laced heroin to individuals at the Jesse Brown VA Medical Center in Chicago.  The U.S. Department of Veterans Affairs is leading this ongoing investigation.

A suburban Chicago man was sentenced to seven years in prison for laundering illegal narcotics proceeds on behalf of drug traffickers in Mexico.  HUAZHI HAN, of North Riverside, Ill., picked up approximately $1.5 million in drug money from others in the Chicago area, used the cash to purchase and re-sell electronic devices, and then sent the laundered money back to drug traffickers in Mexico.  DEA investigated, with assistance from IRS-CI, CPD, HSI, and the U.S. Treasury Department’s Financial Crimes Enforcement Network.

ROSEMARY MAYS, an office manager for a Chicago medical practice, was sentenced to a year in prison for using a doctor’s prescription pad to write more than 3,000 fraudulent prescriptions for hydrocodone, oxycodone, and other controlled substances.  The case was investigated by DEA, FBI, and the U.S. Department of Health and Human Services, Office of Inspector General.

RAYLOE JACKSON, of Maywood, Ill., was sentenced to more than ten years in prison for working with a Rockford-based narcotics supplier to traffic fentanyl and heroin.  The investigation was conducted by a DEA-led task force, which included officers from the Crystal Lake, Ill., Police Department, Belvidere, Ill., Police Department, and Boone County, Ill., Sheriff’s Office.  RPD assisted the task force.

A man who failed to appear in federal court in Chicago before his 2009 drug trial was arrested in Panama and returned to the U.S.  COSME CHACON was among four defendants indicted in 2007 for allegedly participating in a drug trafficking organization that transported heroin to Chicago from New York, Florida, and Texas.  HSI and IRS-CI investigated the drug case.  USMS, U.S. Department of State’s Diplomatic Security Service, and the Justice Department’s Office of International Affairs assisted in Chacon’s return to the U.S.

A federal jury convicted two suburban Chicago men on conspiracy charges as part of a federal probe that disrupted a Mexico-to-Chicago drug pipeline.  SHELDON MORALES, of Morton Grove, Ill., and EDUARDO SANTANA, of Skokie, Ill., conspired with a supplier in Mexico and two inmates in a Texas prison to traffic methamphetamine, fentanyl, and cocaine from Mexico to the Chicago suburbs.  DEA and IRS-CI led the probe, with assistance from the Evanston Police Department.

Suburban Chicago physician ELIZA DIACONESCU was charged with health care fraud for allegedly prescribing opioids to patients without a medical exam and fraudulently billing Medicare for the nonexistent treatment.  The case was investigated by DEA, FBI, U.S. Department of Health and Human Services’ Office of Inspector General, and U.S. Department of Labor’s Office of Inspector General.



Community Partnerships

The PSN program continues to invest resources in violence-prevention initiatives.  The PSN Chicago Task Force, which includes members from the U.S. Attorney’s Office, CPD, ATF, IDOC, Cook County State’s Attorney’s Office, and academic researchers, is designed to address gun violence in certain neighborhoods in Chicago with the highest violent crime rates through aggressive prosecution of violent offenders.  The task force, which in 2018 expanded to include the city of Rockford, strengthens the relationship between the U.S. Attorney’s Office, CPD, Cook County State’s Attorney’s Office, RPD, and Winnebago County State’s Attorney’s Office. 

The PSN Task Force dedicates federal grant funds to support crime prevention programs that are aligned with law enforcement’s strategy to address gun violence.  Currently, PSN grant funds support Camp Hope, a crime prevention program in Rockford for at-risk juveniles who have experienced or witnessed domestic violence; Choose to Change, a program created by Children’s Home & Aid and Youth Advocate Programs in Chicago to engage youth who are heavily impacted by violence and trauma by connecting them with intensive advocate and wraparound support services and trauma-informed therapy; and Readi Chicago’s Reentry Program, a pilot program in Chicago jointly developed by Heartland Alliance and IDOC to provide pre-release and post-release support for individuals returning home from prison.

Members of the U.S. Attorney’s Office have also participated in offender notification meetings and youth outreach forums.  These meetings and forums are still being held during the Covid-19 pandemic, including in a virtual environment, to maintain critical outreach to former offenders.  Offender notification meetings provide an opportunity for individuals who have been convicted of a state or federal offense to make an informed choice not to engage in further criminal activity. 



Researchers at Arizona State University found that youth outreach forums in Chicago have a positive influence on the offenders’ perception of police and help create an understanding that criminal activity results in a higher risk to return to prison.  Researchers at Yale University found that ex-offenders who attend an offender notification meeting in Chicago are 30% less likely to commit a new offense than those who did not attend a meeting. 



The youth forums assist teenagers to identify a path beyond criminal activity.  They are conducted in partnership with CPD, the Cook County Juvenile Temporary Detention Center, and local social service agencies.

CHICAGO — A financial advisor who told clients they were guaranteed to make money by investing with him has been indicted for allegedly defrauding those clients out of $4.7 million.

DARAYL DAVIS falsely represented to clients that they were guaranteed to receive annual interest payments of at least 6% if they invested with Davis’s two firms, Washington, D.C.-based Financial Assurance Corp. and Los Angeles, Calif.-based Affluent Advisory Group LLC, according to a superseding indictment returned Tuesday in U.S. District Court in Chicago.  Davis also claimed that his clients’ principal investments were protected against losses and that some of the purported investments were backed by a well-known multinational life insurance company, the superseding indictment states.  The charges describe how Davis defrauded some of his 22 victims by causing them to “roll over” their retirement savings into an account controlled by Davis.  In reality, Davis did not invest the funds as promised, and none of the purported investments offered by Davis through FAC and AAG had any affiliation with the life insurance company, the charges allege. 

Instead of investing his clients’ money, Davis spent the money for his own personal benefit, including $706,000 on credit card payments, $476,500 to rent a mansion in Los Angeles, $102,000 on airline tickets, $45,000 on car rentals, $42,500 on membership in an exclusive club, $42,000 on luxury hotels, and $25,000 on theater tickets, the indictment states.  Davis also used the investors’ funds to make Ponzi-type payments to newer investors to conceal the scam, the charges allege.  The alleged fraud scheme began in 2003 and continued until this year.

The indictment charges Davis, 45, of Bowie, Md., with six counts of money laundering, five counts of wire fraud, four counts of mail fraud, and one count of aggravated identity theft.  Arraignment is scheduled for June 28, 2018, at 9:30 a.m., before U.S. District Judge Robert W. Gettleman.

The superseding indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.  Valuable assistance was provided by the U.S. Securities and Exchange Commission, which previously filed a civil complaint against Davis. 

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Each count of wire fraud, mail fraud and money laundering is punishable by up to 20 years in prison, while aggravated identity theft carries a mandatory consecutive prison term of two years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

The government is represented by Assistant U.S. Attorney Jennie H. Levin.

CHICAGO — A federal jury today convicted a Chicago attorney on false statement and tax offenses in connection with funds he received from the failed Washington Federal Bank for Savings.

PATRICK D. THOMPSON, 52, of Chicago, was found guilty on all seven counts against him, including five counts of willfully filing a false income tax return and two counts of knowingly making a false statement to the Federal Deposit Insurance Corp.  Each false statement count is punishable by a maximum sentence of 30 years in federal prison, while each tax count is punishable by up to three years.  U.S. District Judge Franklin U. Valderrama set sentencing for July 6, 2022.

The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jay N. Lerner, Inspector General of the FDIC’s Office of Inspector General; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Sally Luttrell, Assistant Inspector for Investigations of the Department of the Treasury, Office of Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General.  Valuable assistance was provided by the City of Chicago Inspector General’s Office.  The government is represented by Assistant U.S. Attorneys Michelle Petersen, Brian Netols, and Jeremy Daniel.

According to evidence presented at trial, Thompson from 2011 to 2014 received $219,000 from Chicago-based Washington Federal via a purported loan and other unsecured payments.  He made one re-payment on the loan but then stopped making payments, and he failed to pay interest on the funds he received.  Washington Federal was shut down in 2017 after the Office of the Comptroller of the Currency determined it was insolvent and had at least $66 million in nonperforming loans.  When the FDIC, as successor in interest to Washington Federal, attempted to obtain repayment from Thompson in 2018, he falsely stated that he owed only $110,000 and that those funds were for home improvement.  In reality, Thompson knew he had actually received $219,000 in three separate installments – none of which went towards home improvements – and that $110,000 of it was paid by the bank directly to Thompson’s law firm as Thompson’s capital contribution.

The tax charges stemmed from Thompson falsely representing on five years of income taxes that he was entitled to a mortgage interest deduction for interest payments made on money he received from Washington Federal, even though he knew the loan was not a mortgage loan and he did not make interest payments as reported on those returns.

CHICAGO — A financial advisor who told clients they were guaranteed to make money by investing with him has been sentenced to more than 13 years in federal prison for defrauding those clients out of $5.1 million.

DARAYL DAVIS falsely represented to clients that they would receive fixed annual interest payments and guaranteed protection against losses if they invested with his firms - Washington, D.C.-based Financial Assurance Corp. and Los Angeles, Calif.-based Affluent Advisory Group LLC.  Davis claimed that some of the investments would be backed by a well-known multinational life insurance company.  In reality, Davis did not invest the funds as promised, and none of the purported investments had any affiliation with the life insurance company. 

Davis instead spent the money for his own personal benefit, including rent for an eight-bedroom mansion in Los Angeles, airline tickets, luxury hotels, car rentals, a club membership, theater tickets, and other items.  Davis often attempted to conceal the scam by using funds from some investors to make Ponzi-type payments to other investors.

The alleged fraud scheme lasted from at least 2003 to 2018.  In all, Davis defrauded more than 25 victims out of more than $5.1 million.  Many of the victims were retirees who gave Davis all of their savings.

Davis, 48, of Chicago, and formerly of Bowie, Md., pleaded guilty earlier this year to one count of mail fraud.  U.S. District Judge Robert W. Gettleman on Monday imposed a 160-month prison sentence.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Valuable assistance was provided by the U.S. Securities and Exchange Commission, which filed a civil complaint against Davis. 

“Davis targeted his victims personally, seeking out fellow church members, individuals who had previously purchased legitimate investment products from him, or ‘friends’ to whom he offered the ‘favor’ of an inside investment opportunity,” Assistant U.S. Attorneys Christopher Catizone and Philip N. Fluhr argued in the government’s sentencing memorandum.  “Davis knew these people trusted him and deliberately exploited that trust.”

CHICAGO — An Iranian businessman schemed with the owner of a European company to illegally export nuclear nonproliferation-controlled materials to Iran from Illinois, according to a newly unsealed federal indictment.

SAEED VALADBAIGI, also known as “Saeed Valad” and “Saeed Baigi,” plotted in 2011 to illegally export U.S.-origin 7075 T6 Aluminum tubing from Illinois to Iran by way of Belgium and Malaysia, the indictment states.  The size and type of the aluminum was used in the missile and aerospace industry and was subject to U.S. regulations for nuclear nonproliferation purposes, the indictment states.  Valadbaigi’s smuggling plan was part of an effort to evade U.S. laws and export-control regulations, according to the charges.

The eight-count indictment was returned in 2016 in U.S. District Court in Chicago and ordered unsealed Wednesday.  It charges Valadbaigi with three counts of wire fraud, two counts of attempting to violate the International Emergency Economic Powers Act, one count of conspiracy to defraud the United States, one count of illegally exporting articles from the United States, and one count of making false statements on a U.S. export form.

Valadbaigi, 56, of Iran, is considered a fugitive.  A warrant for his arrest was issued in 2016 and remains outstanding.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and Dan Clutch, Special Agent-in-Charge of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, Chicago Field Office.  The government is represented by Assistant U.S. Attorney Rajnath Laud.

In addition to the 7075 Aluminum tubing, the newly unsealed indictment accuses Valadbaigi of illegally exporting titanium sheets from a company in northern Illinois, to Iran, by way of the Republic of Georgia, the United Arab Emirates and Malaysia.  At the time of that deal in 2009, Valadbaigi controlled various companies in all three of those countries, the indictment states.  The charges further allege that Valadbaigi in 2012 ordered acrylic sheets from a company in Connecticut, and falsely claimed that the sheets would be used only in Hong Kong.  He later allegedly arranged for the acrylic sheets to be transshipped to Iran.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  Each count of wire fraud and attempting to violate the IEEPA carries a maximum sentence of 20 years in prison.  The illegal export charge is punishable by up to ten years in prison, while the conspiracy and false statement counts are each punishable by up to five years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

The charges against Valadbaigi are part of an investigation that previously resulted in the conviction of NICHOLAS KAIGA, who managed and later owned the Belgium company that did business with Valadbaigi.  Kaiga admitted in a plea agreement that he knew the 7075 Aluminum was subject to U.S. export controls and that it could not be exported to Malaysia without a license from the U.S. Department of Commerce, which neither he nor Valadbaigi possessed.  Kaiga admitted that he nonetheless used his company, Industrial Metals and Commodities, as an intermediary to export the 7075 Aluminum tubing from a company in northern Illinois, to Belgium and then to Malaysia, on behalf of Valadbaigi.  Kaiga pleaded guilty to violating U.S. export-control regulations and was sentenced in 2015 to two years and three months in a U.S. prison.

CHICAGO — A suburban Chicago physician prescribed opioids to patients without a medical examination or visit and then fraudulently billed Medicare for the nonexistent treatment, according to a criminal charge filed in federal court.

ELIZA DIACONESCU, 73, of Lake Forest, Ill., is charged with one count of health care fraud.  The charge is punishable by a maximum sentence of ten years in federal prison.  Arraignment is scheduled for July 18, 2022, at 11:00 a.m., before U.S. Magistrate Judge Maria Valdez.

The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert J. Bell, Special Agent-in-Charge of the Chicago Division of the DEA; Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of Inspector General; Irene Lindow, Special Agent-in-Charge of the Chicago Division of the U.S. Department of Labor, Office of Inspector General; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorneys Jared Hasten, Charles W. Mulaney, and Ernest Y. Ling.

The charge was brought by the U.S. Attorney’s Office’s Opioid Task Force, which was formed in 2019 for the purpose of combatting the growing number of unlawful distributions of controlled substances fueling the nation’s opioid crisis.

A criminal information filed Thursday in federal court alleges that from 2016 to 2021, Diaconescu pre-signed blank prescriptions for hydrocodone, oxycodone, and fentanyl for patients of her pain clinic in Gurnee, Ill., so that the prescriptions could be provided to the patients when she was not at the clinic.  The patients picked up the pre-signed prescriptions for the opioids from other workers at the clinic without having a contemporaneous examination with Diaconescu, the information states.

Diaconescu then knowingly submitted false claims seeking reimbursement from Medicare for the purported visits, knowing that such visits did not occur.  Diaconescu and others at the clinic created false paperwork indicating that Diaconescu had face-to-face exams with patients when, in fact, the patients had come only to pick up the pre-signed prescriptions and had not visited with Diaconescu, the charge alleges.

The public is reminded that an information is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

CHICAGO — A chiropractor who owned several clinics in the north suburbs of Chicago has been sentenced to 20 months in federal prison for billing an insurance carrier for medically unnecessary or nonexistent services.

As a licensed chiropractor and owner of the facilities, STEVEN PAUL required the clinics’ chiropractors and medical doctors to order x-rays, MRI scans and neurological diagnostic testing, without regard to medical necessity.  Paul billed Blue Cross Blue Shield of Illinois for the unnecessary services, and he also billed the carrier for physical therapy services that were never provided.

Paul, 46, of Northbrook, previously pleaded guilty to one count of health care fraud.  U.S. District Judge Ronald A. Guzman on Tuesday imposed the prison sentence in federal court in Chicago.  Judge Guzman cited Paul’s “extraordinary cooperation” in the government’s investigation as a basis for imposing what the Judge said was the lowest possible term of imprisonment he would consider for Paul’s fraud scheme.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor, Office of Inspector General.

 

Paul and a co-defendant, chiropractor BRADLEY MATTSON, jointly owned six chiropractic clinics in the north suburbs of Chicago: Hawthorn Physical Medicine, Woodfield Physical Medicine, Stratford Physical Medicine, Algonquin Physical Medicine, Northshore Physical Medicine, and Cumberland Physical Medicine.

 

Paul and Mattson admitted in plea agreements that they required patients to receive an initial x-ray and a pre-set schedule of clinic visits for a period of six months, without regard to the medical necessity of the visits.  Paul admitted that from 1999 to 2008, he directed billings to Blue Cross Blue Shield totaling $3.65 million for medically unnecessary tests or physical therapy services that were not provided, and his clinics collected $1.33 million in fraudulent reimbursements from the insurance company.

 

During the investigation, an undercover FBI agent visited the Hawthorn clinic for treatment of a purported back strain.  Mattson diagnosed the agent with a pinched nerve and ordered a pre-set treatment plan that began with daily visits for two weeks.  Mattson rendered his diagnosis despite the opinion of the clinic’s medical doctor and a physical therapist that the agent did not have a pinched nerve but rather a pulled muscle.

 

Mattson, of Lake Forest, pleaded guilty to health care fraud and was sentenced in 2012 to six and a half years in prison.

 

The government is represented by Assistant U.S. Attorney Renai S. Rodney.

CHICAGO — A Chicago hotel developer was sentenced today to three years in prison for exploiting a federal visa program to fraudulently raise capital from Chinese nationals who were seeking residency in the United States.

ANSHOO SETHI, the founder of A Chicago Convention Center LLC, purported in 2011 to build a hotel and convention center near O’Hare International Airport in Chicago. Sethi solicited Chinese nationals to invest $500,000 apiece in the project, plus $41,500 in administrative fees to Sethi’s company. Each Chinese national who participated in the project also applied for an EB-5 visa, which allows foreign investors to obtain a temporary two-year visa that could later be converted to a permanent visa upon success of an employment-generating investment. While soliciting investors Sethi made several false statements, including lies about funding and tax credits from the State of Illinois and the City of Chicago, none of which materialized.

The $900 million project never got off the ground, and no EB-5 visas were ever granted to investors.

Sethi, 32, of Chicago, pleaded guilty last year to one count of wire fraud. In addition to the 36-month prison term, U.S. District Judge John Z. Lee also ordered Sethi to pay $8.85 million in restitution to the victim investors.

The prosecution represents the largest EB-5 criminal fraud case in the United States to date.

The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.

“Defendant Anshoo Sethi abused the EB-5 visa program and blatantly lied to investors and the United States government on a massive scale,” Assistant U.S. Attorney Sunil Harjani argued in the government’s sentencing memorandum. “Overseas investors spent much time and energy making the difficult decision to invest in the Sethi project, and processing their visa applications – not knowing that the project was built on a bed of lies and forged documents.”

According to his plea agreement, Sethi’s fraud scheme began in the summer of 2011 and continued until February 2013. Sethi told investors that he planned to build the hotel and convention center on a three-acre parcel of land in the 8200 block of West Higgins Road in Chicago, just east of O’Hare. Sethi falsely told investors that his company maintained relationships with large hotel chains that purportedly were interested in the project, including Hyatt, Starwood and Intercontinental Hotel Group. To bolster an additional false statement regarding City of Chicago funding, Sethi signed a “Redevelopment Agreement TIF” document that purported to convey a relationship between the city and Sethi’s company. The document, which contained a bogus city ordinance implying that the project had been approved for TIF funding, was provided to third party brokers who used it to solicit investors.

In all, Sethi raised approximately $158 million from more than 290 investors. The U.S. Securities and Exchange Commission brought a civil lawsuit against Sethi and was able to restore approximately $147 million to Chinese investors.

The government is represented in the criminal prosecution by Mr. Harjani.

CHICAGO — A suburban physician has been indicted on federal fraud charges for allegedly pocketing nearly $1 million in payments from Medicare and a private insurer for nonexistent treatment.

DR. PRANAV PATEL owned and operated Palos Medical Care, S.C., in Palos Heights.  The 12-count indictment alleges that Dr. Patel submitted fraudulent claims for purported medical tests and examinations that were never performed.  He allegedly used some of his patients’ names without their knowledge to submit fraudulent claims.  From 2008 to 2013, Dr. Patel fraudulently obtained, or caused his clinic to obtain, at least $950,000 in payments from Medicare and Blue Cross and Blue Shield of Illinois, the indictment states.

The indictment was returned Thursday in U.S. District Court in Chicago.  It charges Dr. Patel, 51, of Burr Ridge, with seven counts of health care fraud, three counts of making false statements in relation to a health care matter, and two counts of aggravated identity theft.  Arraignment is set for May 15, 2018, at 8:45 a.m., before U.S. District Judge Amy J. St. Eve.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor, Office of Inspector General; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.

The indictment describes several instances in which Dr. Patel submitted a claim to BCBS or Medicare for a non-invasive “duplex scan” purportedly performed on a patient, when, in fact, no such test was actually completed.  On at least one occasion, according to the charges, Dr. Patel prepared a seven-page electronic medical record indicating that a patient had come to the office for a follow-up visit and examination, when the patient had actually come to the office to re-fill a prescription.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. 

Aggravated identity theft is punishable by a mandatory sentence of two years in prison.  Health care fraud is punishable by up to ten years, while false statements carry a maximum of five years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines. 

The government is represented by Assistant U.S. Attorneys Stephen Chahn Lee and Kaarina Salovaara.